June 23, 2010

Short-term rentals of houses and condominiums would get tighter regulation under a plan sent to the City Council today as aldermen try to get a handle on leases in residential areas.

New "vacation rental" agreements would be prohibited in unoccupied homes or condos in areas with single-family homes or small apartment buildings under a proposal the council's License and Zoning committees approved. Existing vacation rentals in those areas, which often are advertised online, would be allowed to continue operating, but would be subject to rules similar to bed-and-breakfast establishments, said Ald. Brendan Reilly, 42nd.

"We've got hundreds of rentals being offered, with no thought to the health, safety and welfare of those staying there," Reilly said. The new ordinance would require that such establishments maintain standards of cleanliness and meet requirements for fire safety, Reilly said.

If property owners in the downtown area and other parts of the city where businesses are prevalent and bigger condominium buildings are common want to rent apartments or houses to tourists and others for as little as a single day, they will need to get a special use permit from the Zoning Committee, then apply for a $500 two-year license.

Reilly said such rentals are now operating completely below the radar of inspectors. The city will likely only inspect the units when they get complaints, he acknowledged, but said at least there will be a record of such set-ups and a standard they will need to meet.

Short term rentals became a hot-button issue last fall after a DePaul University student was fatally shot at a party in a Northwest Side house that had been leased just to host the bash. To read more about that please click here.

Aldermen said they are getting increasing complaints from constituents fed up with vacant houses turning into nightclubs.

But Ald. Robert Fioretti, 2nd, said he hasn't heard a hue and cry in his South Loop ward, where there is a high condominium vacancy rate. Fioretti said he is troubled by a clause in the ordinance mandating no more than six units in a given building be allowed to be converted into vacation rentals.

The city should allow condominium associations to determine how many units can be rented in their building rather than setting a limit, said Fioretti, the lone alderman in the committee to vote against the plan.

All 50 aldermen on the Chicago City Council had to file paperwork earlier this year detailing their outside income and gifts. The Tribune took that ethics paperwork and posted the information here for you to see. You can search by ward number or alderman's last name.

The Cook County Assessor's office has put together lists of projected median property tax bills for all suburban towns and city neighborhoods. We've posted them for you to get a look at who's paying more and who's paying less.

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